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Page 4 of 5 <br />debt service, and estimates of the amounts by which energy or operating costs will be <br />reduced. <br />A guaranteed energy -savings contract that includes a written guarantee that savings <br />will meet or exceed the cost of energy conservation measures is not subject to competitive <br />bidding requirements of section 471.345 or other law or city charter. The contract is not <br />subject to section 123B.52. <br />A municipality may enter into a guaranteed energy -savings contract with a qualified <br />provider if. after review of the report, it finds that the amount it would spend on the energy <br />conservation measures recommended in the report is not likely to exceed the amount to be <br />saved in energy and operation costs over 20 years from the date of final installation if the <br />recommendations in the report were followed, and the qualified provider provides a <br />written guarantee that the energy or operating cost savings will meet or exceed the costs of <br />the system. The guaranteed energy -savings contract may provide for payments over a <br />period of time, not to exceed 20 years. <br />A municipality may enter into an installment payment contract for the purchase and <br />installation of energy conservation measures. The contract must provide for payments of <br />not less than 1/20 of the price to be paid within two years from the date of the first <br />operation, and the remaining costs to be paid monthly, not to exceed a 20-year term from <br />the date of final acceptance. <br />A municipality entering into a guaranteed energy -savings contract shall provide a <br />copy of the contract and the report from the qualified provider to the commissioner of <br />commerce within 30 days of the effective date of the contract. <br />Guaranteed energy -savings contracts may extend beyond the fiscal year in which they <br />become effective. The municipality shall include in its annual appropriations measure for <br />each later fiscal year any amounts payable under guaranteed energy -savings contracts <br />during the year. Failure of a municipality to make such an appropriation does not affect the <br />validity of the guaranteed energy -savings contract or the municipality's obligations under <br />the contracts. <br />Subd. 14. Damage awards. In any action brought challenging the validity of a <br />municipal contract under this section, the court shall not award, as any part of its <br />judgment, damages, or attorney's fees, but may award an unsuccessful bidder the costs of <br />preparing an unsuccessful bid. <br />Subd. 15. Cooperative purchasing. (a) Municipalities may contract for the <br />purchase of supplies, materials, or equipment by utilizing contracts that are available <br />through the state's cooperative purchasing venture authorized by section 16C.11. For a <br />contract estimated to exceed $25 000, a municipality must consider the availability, price <br />and quality of supplies, materials, or equipment available through the state's cooperative <br />purchasing venture before purchasing through another source. <br />(b) If a municipality does not utilize the state's cooperative purchasing venture, a <br />municipality may contract for the purchase of supplies, materials, or equipment without <br />regard to the competitive bidding requirements of this section if the purchase is through a <br />national municipal association's purchasing alliance or cooperative created by ajoint <br />powers agreement that purchases items from more than one source on the basis of <br />competitive bids or competitive quotations. <br />Subd. 16. Reverse auction. Notwithstanding any other procedural requirements of <br />this section, a municipality may contract to purchase supplies, materials, and equipment <br />using an electronic purchasing process in which vendors compete to provide the supplies, <br />materials, or equipment at the lowest selling price in an open and interactive environment. <br />A municipality may not use this process to contract for services, as defined by section <br />16C.02. subdivision 17, or a service contract, as defined by section 16C.02, subdivision 7a. <br />Nothing in this subdivision must be construed to prohibit a municipality from adopting a <br />resolution, rule, regulation, or ordinance relating to minimum labor standards under <br />subdivision 7. or procurement from economically disadvantaged persons under subdivision <br />8. <br />Subd. 17. Electronic sale of surplus supplies, materials, and equipment. <br />Notwithstanding any other procedural requirements of this section, a municipality may <br />contract to sell supplies, materials, and equipment which is surplus, obsolete, or unused <br />https://www.revisor.mn.gov/statutes/cite/471.345 7/31 /2018 <br />